A disagreement between two Assembly Cabinet Ministers over the amount of money that should be spent on training could delay the start of Wales's second round of top-level European aid.

A political source told us that Enterprise Minister Andrew Davies and Education Minister Jane Davidson had had different views on the allocation of cash for the Convergence Fund programme, due to get under way in January.

The seven-year Objective One programme for West Wales and the Valleys comes to an end on December 31, although the final deadline for spending committed money is December 2008.

Earlier this year it was announced that Wales' poorest region had qualified for a further seven years of top-level aid from the EU's Convergence Fund. There were mixed feelings about the news, with disappointment that the region's prosperity had not improved relative to the EU average.

The new programme will have to be more focused on raising the region's GDP and increasing industrial competitiveness, in line with the EU's so-called Lisbon agenda. This raises question marks over the future of some of the community-based Objective One schemes run by voluntary sector groups.

A voluntary sector source told us, 'We are very worried about what is going to happen. The funding for some schemes is not scheduled to run on beyond the end of the year, and people don't know whether their employment will carry on.

'It has been suggested in some cases that the organisations could carry on funding the posts from their own resources with a view to getting retrospective approval for Convergence Fund money once the programme is approved.

'But in doing so they will be taking a risk - the projects they are involved in may not get the go-ahead to carry on.'

A political source said, 'Jane Davidson wanted more money for training, which is her responsibility, but Andrew Davies wanted more for his division.

This held up the programme, which has still not been sent to Brussels for approval. It could be May before the EU gives full approval.'

'It is incredible that internal disputes have been allowed to escalate to such heights, forcing voluntary sector organisations to take risks they can ill afford.

'This whole fiasco is yet another example of Labour mismanagement.

'The Labour Government is putting the egos of Ministers before the needs of the people of Wales; this cannot be allowed to continue. It's time to make a difference.'

An Assembly Government spokesman said, 'There is no disagreement and no delay.

'The draft programmes have already been considered by the Enterprise Innovation and Networks and European and External Affairs committees and, as previously stated, we intend to submit the programmes before Christmas.'

Meanwhile, Tory economic spokesman Alun Cairns said figures provided to him by Andrew Davies showed that jobs created under the Objective One programme had not matched up to expectations. He said, 'According to the Government figures, of the 145,600 jobs promised, only 93,600 have been created to date.

In one example a total of 6,500 jobs were forecast for creation in Conwy but so far only 2,400 have been realised.

'Under Labour, Wales is failing to maximise the opportunities presented by the millions we are receiving in European funding.

'While I appreciate that some of these projects are ongoing it is a worrying prospect that job creation levels appear even lower than forecast.

'It is clear that either project applications have been willfully misleading or European funds have been utilised inappropriately and ineffectively.'